India: Beer consumption rose 27% in 2006-07

Beer consumption in the country hit a new high with 132.7 million cases of the alcoholic beverage, worth Rs 10,000 crore, consumed in 2006-07, Business Standard published June 20. This implies a growth of 27 per cent in beer sales over the last year’s 104.3 million cases.

North India continued to register healthy growth rate with 45 per cent rise in beer sales. However, southern part of the country remained the largest regional beer market with sales of 471 million litres, valued at more than Rs 4,000 crore. The north accounted for 35 million cases, nearly 25 per cent of the national market.

“The shift from auction system to licensing regime, adopted by states such as Rajasthan and Punjab, has resulted in exponential growth in the sale of beer in these states. The prices dropped by at least Rs 20 a bottle in Punjab and Haryana, resulting in 500 per cent and 200 per cent growth in sales respectively,” Sandeep Kumar of All India Brewers Association (AIBA) said.

According to industry experts harsh summer across the country also contributed to higher consumption of beer in 2006-07.

The central zone accounted for 35 million cases with Orissa, West Bengal and Union Territory of Daman, Diu and Silvasa contributing 8 per cent sales each.

The Rs 8,000-crore plus domestic beer market is mainly controlled by United Breweries and SABMiller groups, who together have about 25 breweries under their fold.

Breweries such as Mohan Meakins, Mount Shivalik, Yuksom Breweries, Devan Modern Breweries and Asia Pacific Breweries control nearly 18 per cent of the domestic market.

With the entry of global beer majors such as Heineken, Anheuser-Busch and others, who plan to launch their products in India, beer consumption in the country is set to rise in the future.

However, the industry sources said that most of the states were yet to implement the draft alcohol policy recommendation of reducing duties on beer from about 42 per cent to 35 per cent, in line with global standards.

The states have also been asked to reduce sales tax on beer by another 5 per in phases if revenue targets are achieved.

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